question archive Using the high low method, the variable rate is found to be $5 per hour and the low point is 300 hours at a total cost of $1,800
Using the high low method, the variable rate is found to be $5 per hour and the low point is 300 hours at a total cost of $1,800
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Using the high low method, the variable rate is found to be $5 per hour and the low point is 300 hours at a total cost of $1,800. What is the fixed cost?
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Variable rate = $5 per hour
Low point = 300 hours
Total cost = $1,800
Total variable cost at low point = Variable rate x Low point
= 5 x 300
= $1,500
Fixed costs = Total cost - Total variable cost at low point
= 1,800-1,500
= $300
The fixed cost = $300
